Gap to Manage Fulfillment Costs by Prioritizing "Most Valuable" Customers

By Sheridan Fifer

Gap's online sales totaled more than $6 billion last year, growing 54% year over year. But all those online purchases have to be shipped and delivered, and this is causing headaches for more retailers than just Gap. But Gap has a creative solution to the fulfillment issue: prioritize some customers over others through a tier delivery system. The tiers are gold, silver, and bronze, and the customers in the top tiers will receive faster delivery. Gap is prioritizing some customers according to "lifetime value," ensuring that the retailer offers especially good service to its most loyal customers. 

Under the system, delivery speeds will be tiered as gold, silver and bronze, to "manage fulfillment costs effectively while pleasing our most valuable lifetime value customers," said CEO Sonia Syngal on the call.

Read the full story at Retail Dive.